New Delhi, Jan 13 (Mayank Nigam) India’s consumer price index (CPI)-based inflation eased to four-month low of 5.22% in December 2024 from 5.48% in the previous month, as per official data released on Monday. With this, the headline inflation has stayed within the Reserve Bank of India’s (RBI) medium-term target of 2-6%. “Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of December 2024 over December 2023 is 5.22% (Provisional). Corresponding inflation rates for rural and urban are 5.76% and 4.58%, respectively,” said the press release on inflation numbers. As per Ministry of Statistics and Programme Implementation (MoSPI), Consumer Food Price Index (CFPI) declined to 8.39% in December last year from 9.04% in the previous month.
“It can be observed that after December 2023, inflation rate for both CPI (General) and CFPI were declining till May 2024. The CPI (General) reached to its lowest point during this period in July 2024. However, the CPI (General) and food inflation in December, 2024 is the lowest in last four months,” said MoSPI. During the month of December, 2024 significant decline in inflation was observed in vegetables, pulses & products, sugar and confectionary, personal care & effects, and cereals and products etc. The top five items showing highest year on year inflation at all India level in December 2024 were peas, potato, garlic, coconut oil and cauliflower. The key items having lowest year on year inflation in December were jeera, ginger, dry chillies and LPG (excluding conveyance).
Commenting on December inflation numbers, ICRA chief economist Adyta Near said, “While the CPI inflation declined to 5.2% in December 2024 from 5.5% in November 2024, the pace of the correction was narrower than expected. In sequential terms, the dip was driven by food and beverages, even as the Yoyo inflation for fuel and light, and pan, tobacco and intoxicants recorded mild upticks.” “The sharp sequential fall in vegetable prices in January 2025 is likely to augur well for the food and beverages inflation print for the month, which is expected to ease to five-month low of 6.0-6.5% in the month from 7.7% in December 2024. Consequently, ICRA estimates the headline CPI inflation to soften to 4.5-4.7% in January 2025 from 5.2% in December 2024,” she further said.